CH Energy earnings dip slightly

Fortis execs disappointed with negative advisory

May 10, 2013

Written by

Poughkeepsie Journal

CH Energy Group’s earnings report Thursday showed a slight decline, but the quarterly filing is overshadowed by the approach of the end-game in its quest to sell itself to a Canadian company.

That company, Fortis Inc., held its annual shareholder meeting in Newfoundland on Thursday, with CH and Central Hudson’s top executives on hand. Fortis’ executives, in a prepared presentation, said they were disappointed with a negative advisory from the commission’s judges.

“Fortis and Central Hudson are reviewing the decision and will have further discussions with the commission,” they said.

The judges hinted that Fortis might try a stronger public benefit to better meet commission standards for deals.

How Fortis will respond is yet to be seen. In prepared remarks, H. Stanley Marshall, Fortis’ president, said, “Our corporate philosophy is, and always will be, to grow our business only if it can be done profitably.”

Commission spokesman James Denn said the five members will decide whether an evidentiary hearing is needed. Parties in the case have split over that issue.

First-quarter earnings of CH Energy were $1.39 per share, 4 cents lower than a year ago, using non-GAAP measures, GAAP being “generally accepted accounting principles.”

Spokesman John Maserjian said this shows core earnings, “which represent our underlying operations.” On a GAAP basis, the report shows $1.19 per share, diluted, up from $0.98 a year earlier.